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Neoliberalism and For-Profit Universities: the Case of Laureate International

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Neoliberalism and For-Profit Universities: the Case of Laureate International Neoliberalism and For-Profit Universities: The Case of Laureate International Kiev Antonio Ariza Garcia PhD University of York Management September 2018 Abstract For-profit universities are growing in importance as alternative providers in higher education. This thesis analyses structural changes in the configuration of global higher education systems, particularly where states have instrumented neoliberal policies, thus modifying traditional social structures and the meaning of the public good. Moreover, I describe existing global trends in higher education and explore the implications of neoliberalism in higher education. Adopting a qualitative positivist research strategy, I conduct a case study approach of an American multinational corporation with four units of analysis and using interviews with Laureate staff and higher education analysts (n=35) and documents as primary evidence, I drew my findings using thematic analysis. The thesis contributes to an emerging body of scholarly research about for-profit universities and multinational corporations investing in global higher education. Analysis indicates that the for-profit universities’ operational efficiency and strategic flexibility contributes to the reproduction of neoliberalism in higher education in the search for institutional legitimacy and that this is achieved through multiple strategic collaborations with public and private institutions. The profit motive is not only an ideological driver for the reproduction of neoliberalism in academia, but often a starting point in the intellectual and pragmatic configurations of a privatized higher education system by the state. Analysis revealed that social responsibility and sustainability in higher education is of great importance for the operation of a for-profit university and its legitimacy, and that there are multiple roles of the state given increasing privatization, massification, commodification, marketisation, internationalization and unbundling of higher education, where austerity, increasing tuition fees and the philosophy of competition and operational efficiency assimilates universities’ financial priorities between public and private higher education institutions and reproduces neoliberalism in academia. These findings have significant implications for national governments, policy makers, as well as leaders of academic institutions and societies. 2 List of Contents Abstract………………………………………………………………………………………... 2 List of Contents …………………………………………………………………………….. 3 List of Tables ………………………………………………………………………………… 7 List of Figures ……………………………………………………………………………….. 8 Acknowledgements ………………………………………………………………………. 9 Declaration …………………………………………………………………………………… 10 Chapter 1. Introduction 11 1.1. Background ……………………………………………………………………… 11 1.2. Scope of Research …………………………………………………………… 12 1.3. Significance of the problem ……………………………………………… 14 1.4. Research aims and objectives …………………………………………… 15 1.5. Research Questions ………………………………………………………… 15 1.6. Thesis Structure ……………………………………………………………… 16 1.7. Summary ……………………………………………………………………………. 19 Chapter 2. Neoliberalism, Global Higher Education Trends and the For-Profit University 21 2.1. Introduction …………………………………………………………………… 21 2.2. Definitions of Neoliberalism …………………………………………… 22 2.3. Dimensions of Neoliberalism ………………………………………… 24 2.4. Origins of Neoliberalism ………………………………………………… 27 2.5. Commodification of Higher Education and the role of the Neoliberal state …………………………………………………………… 36 2.6. The For-Profit university and Neoliberalism …………………… 44 2.7. Massification of Higher Education ………………………………….. 49 2.8. Economic thought and Neoliberalism ……………………………. 51 2.9. Internationalization of Higher Education ………………………… 54 2.9.1. Rationales and motivations for the Internationalization of Higher Education …………………………………………………………… 60 2.9.1.1. Economic and political rationales ……………………………… 61 2.9.1.2. Cultural and educational rationales ………………………… 63 2.10. Summary ……………………………………………………………………… 66 3 Chapter 3. Methodology. 69 3.1. Introduction ………………………………………………………………… 69 3.2. The research problem, aims and questions …………………….. 69 3.3. Philosophical worldview ……………………………………………….. 71 3.3.1. Ontology ……………………………………………………………………… 74 3.3.2. Epistemological considerations ……………………………………… 76 3.4. Research design and methodology ………………………………… 77 3.4.1. Quantitative and qualitative research approaches …………… 77 3.5. The Case Study Approach ……………………………………………… 79 3.5.1. The selection of Laureate Education for the case study …… 82 3.6. Data Collection ……………………………………………………………… 86 3.6.1. Interviews …………………………………………………………………… 87 3.6.1.1. Before the interviews ……………………………………………… 89 3.6.1.2. During the interview ……………………………………………….. 90 3.6.1.3. Recording the interviews ………………………………………… 90 3.6.1.4. Transcription …………………………………………………………. 91 3.6.1.5. Gaining access ………………………………………………………… 91 3.6.1.6. Cross-cultural understanding …………………………………… 92 3.6.1.7. Positionality ……………………………………………………………. 93 3.6.1.8. Sampling ………………………………………………………………… 94 3.6.2. Documents …………………………………………………………………… 95 3.6.3. Triangulation ………………………………………………………………. 96 3.7. Data Analysis ………………………………………………………………… 97 3.7.1. Thematic Analysis ………………………………………………………… 97 3.8. Ethical considerations ……………………………………………………. 104 3.9. Limitations of the study ………………………………………………… 105 3.10. Summary ……………………………………………………………………… 106 Chapter 4. Laureate Education: Strategic Flexibility and Operational Efficiency Theme one 108 4.1. Introduction …………………………………………………………………… 108 4.2. Strategic flexibility ………………………………………………………… 108 4.2.1. Multiple platforms: global integration …………………………… 114 4.2.2. Scale and efficiencies …………………………………………………….. 119 4.3. Laureate Latin American Region: Mexico ……………………….. 126 4 4.3.1. Human capital ………………………………………………………………. 129 4.3.2. The Laureate Network Office (LNO) ……………………………….. 132 4.3.3. One Campus by Laureate ……………………………………………….. 135 4.3.4. Criticism of For-Profit Institutions ………………………………….. 137 4.4. Summary ……………………………………………………………………… 139 Chapter 5. Public Good, Social Impact and Sustainability Theme two 140 5.1. Introduction ………………………………………………………………….. 140 5.2. Here for Good: Laureate´s social contribution to global Higher Education …………………………………………………………… 141 5.3. Social mobility and responsible initiatives. ……………………… 147 5.4. Laureate as a public benefit corporation PBC and B- corporation …………………………………………………………………… 150 5.4.1. Public benefit corporations in the United States ………………. 150 5.5. Laureate as a Benefit corporation ……………………………………. 152 5.5.1. B-Labs …………………………………………………………………………… 152 5.5.2. Laureate B corporation impact assessment ……………………. 154 5.5.2.1. Impact assessment categories …………………………………… 155 5.6. Social impact and sustainability in higher education ………… 159 5.7. Summary ……………………………………………………………………… 161 Chapter 6. Legitimacy and the profit motive in Higher Education Theme Three 163 6.1. Introduction …………………………………………………………………… 163 6.2. The profit motive in higher education ……………………………… 164 6.3. Sources of legitimacy……………………………………………………….. 170 6.3.1. Success …………………………………………………………………………. 172 6.3.2. Distinctiveness and differentiation …………………………………. 174 6.3.3. Partnerships and Alliances ……………………………………………… 177 6.3.4. Third-party accreditation and Assessments ……………………. 179 6.3.5. Internationalization ……………………………………………………….. 183 6.4. Summary ……………………………………………………………………… 189 Chapter 7. The role of the state and the For-profit University Theme Four 190 5 7.1. Introduction …………………………………………………………………… 190 7.2. The state as higher education investor and regulator ………. 191 7.3. Property and university autonomy …………………………………. 196 7.4. Competition, collaboration and the liberator state ………….. 199 7.5. State priorities and the for-profit university …………………… 202 7.6. The privatiser state and higher education alternatives …….. 208 7.7. The Unbundling of Higher Education ……………………………… 213 7.7.1. Online program managers ……………………………………………… 217 7.8. Summary ……………………………………………………………………… 219 Chapter 8. Conclusions ……………………………………………………………… 222 8.1. Introduction ………………………………………………………………….. 222 8.2. Key findings ………………………………………………………………….. 224 8.2.1. Strategic flexibility and operational efficiency ………………… 224 8.2.2. Public good, social impact and sustainability …………………. 226 8.2.3. Legitimacy and the profit motive in higher education …….. 228 8.2.4. The role of the state and the for-profit university …………… 231 8.3. Limitations and opportunities for future research …………… 235 8.4. Concluding thoughts ………………………………………………………. 236 Appendices 238 Appendix A- The Laureate International Universities Global Network Map (as of July 2018) ……………………………………………………. 238 Appendix B- Laureate Academic Sessions and enrolment cycles per region……………………………………………………..……………………………. 239 Appendix C- Laureate Education, Inc. Consolidated Statement of Operations 2013-2017 ……………………………………………………………… 240 Appendix D- Laureate Education, Inc. Consolidated Statement of Cash Flow, Revenues and Enrolments per operating segment 2013-2017…………………………………………………..……………………………… 241 Appendix E- Project Information and Consent Form ……………………. 242 Appendix F- Interview Protocol ………………………………………..……….. 244 Appendix G- Interview list and profile of participants ………………... 247 List of Abbreviations ………………………………………………………………….. 249 List of References ……………………………………………………………………... 250 6 List of Tables Table 1: The Washington consensus: original and expanded version …... 31 Table 2: Schools of neoliberal though ……………………………………………….. 35 Table 3: Implications of five elements for the internationalization
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